FHA Lowering Requirements

[sputnam]

welcome change I don't think an attic pic has ever changed my report

It's changes mine a few times. You can't always tell that the dwelling burned and was rebuilt without lookin in the attic. Sometimes, the contractors leave some charred framing. .... Buy go ahead... do the least you can do.

 

[shrubberyvaluation]

Posted by Craig Gilbert on another forum-
"

Wow on the comp photos, was a PITA on some houses to position to get a side in it, oh and the times I took a comp photo without either side and had to go back...

 

[Non Sequitur]

From the reactions on Facebook one would think FHA adopted the VA fee schedule. Crazy. Heck, if MLS photos of the comps are the better than originals why not use MLS photos of the subject if it's a sale? That would "save" more time.

 

[Andee]

I don't think lowering their standards is going to make a bit of difference, the clients will still require everything to be the same. I'm working on one right now that wants to know the remaining economic age of the roof for an FHA. Gotta love when they do this crap because your staring at this roof and thinking "Does it matter? I live in a place where the roof will be replaced within the next 5 years for hale or storm damage." Like we just know this stuff off the tops of our heads and have insight/or can read minds, that we know when that particular roof was installed, and what type of rating the roof installed has. Then you go to the Sellers Disclosure to find out they don't even know if the roof has ever been replaced because they didn't live there long enough, and the attic provides no indication of anything.

I wish the Appraisal Subcommittee would grow a pair and take over some control of what should and shouldn't be required for a seamless process, and not constantly leave us guessing what needs to go into a report. Get everyone on the same page and not let them dictate everything to us what they expect to see. I don't know how many times I have worked on reports for the same client and the same lender and it's written the same way, but you get one reviewer/underwriter that thinks they know better and your redoing everything because "they said so", even though there is nothing that made it clear in the Engagement Letter.

 

[Zoe]

It's changes mine a few times. You can't always tell that the dwelling burned and was rebuilt without lookin in the attic. Sometimes, the contractors leave some charred framing. .... Buy go ahead... do the least you can do.

My father in law was builder and building inspector for big city. He made some money on burn outs. He removed the roof completely. Was no damaged goods when he was done with rehab. It was gutted and rebuilt.

Bought it very cheap. Everything was to code when he was done and sold it.

 

[glenn walker]

I don't think lowering their standards is going to make a bit of difference, the clients will still require everything to be the same. I'm working on one right now that wants to know the remaining economic age of the roof for an FHA. Gotta love when they do this crap because your staring at this roof and thinking "Does it matter? I live in a place where the roof will be replaced within the next 5 years for hale or storm damage." Like we just know this stuff off the tops of our heads and have insight/or can read minds, that we know when that particular roof was installed, and what type of rating the roof installed has. Then you go to the Sellers Disclosure to find out they don't even know if the roof has ever been replaced because they didn't live there long enough, and the attic provides no indication of anything.

I wish the Appraisal Subcommittee would grow a pair and take over some control of what should and shouldn't be required for a seamless process, and not constantly leave us guessing what needs to go into a report. Get everyone on the same page and not let them dictate everything to us what they expect to see. I don't know how many times I have worked on reports for the same client and the same lender and it's written the same way, but you get one reviewer/underwriter that thinks they know better and your redoing everything because "they said so", even though there is nothing that made it clear in the Engagement Letter.

The ASC or TAF or State Boards have no control over Lenders Engagement Letters or Investor overlays or GSE or Agency Guidelines. Sorry your just going to have to learn to live with it.

 

[azbassman21]

"Our clients still require it." AMC QC Review boilerplate.

I have mixed feelings. Some of the photo requirements were just good practice. In all honesty I never understood the push back for having to show the sides of the subject or angled and original comp photos, but I'm in the minority. Either way, before indie appraisers start dancing in the streets this is just an effort at aligning FHA with stripped down GSE requirements and the push for "modernization." This is not an effort to help indie appraisers.

It's time to modernize this industry. It's what has hamstrung us for the past 20 years with lenders and AMCs. I don't think FNMA should be insuring loans without an appraiser signature, but streamlining the process is necessary, i.e. photo requirements with HUD, unnecessary writing and narratives in the report that is not even read anyways, having us inspect certain things that aren't necessary or shouldn't be within our scope, etc. We have access to photos of almost any house in the country at our fingertips, there is no sense in driving around, wasting an hour taking photos of houses we have seen 4 and 5 times prior. The process needs to be sped up and we should be able to get reports in while at the property, which hopefully will happen with these new forms.

 

[Non Sequitur]

It's time to modernize this industry. It's what has hamstrung us for the past 20 years with lenders and AMCs. I don't think FNMA should be insuring loans without an appraiser signature, but streamlining the process is necessary, i.e. photo requirements with HUD, unnecessary writing and narratives in the report that is not even read anyways, having us inspect certain things that aren't necessary or shouldn't be within our scope, etc. We have access to photos of almost any house in the country at our fingertips, there is no sense in driving around, wasting an hour taking photos of houses we have seen 4 and 5 times prior. The process needs to be sped up and we should be able to get reports in while at the property, which hopefully will happen with these new forms.

Problem is we are paid, in part, for those inefficiencies. No one is going to pay us the same or more for less photos and driving.

 

[Non Sequitur]

Class sent out an email yesterday announcing the new photo requirements, and Facebook exploded with "Harumphs!". Man, this is one screwed up business right now.

 

[BRCJR]

I think it is time for licensed residential appraisers to be able to complete a loan when FHA is involved, again.

I do not do any residential work, it will not impact me, but it is a ship that should be righted.

Never made any sense that a newly certified residential could do FHA related appraising but a 25-year licensed seasoned appraiser could not, just due to the stroke of a pen (congress ignorance).